Canadian grain exporters are benefiting from all-time low ocean freight rates. The Baltic Freight Index, an indicator of ocean shipping prices, hit an all-time low last week.
"The freight rates peaked about five-six years ago and, ever since, they've been coming down. It's just a matter of over-supply of vessels versus the freight that needs to be put on the vessels," says Bruce Burnett of CWB.
As an example, the price of shipping from the West Coast to Japan is around $20 per tonne.
"That's extremely low relative to not only the peaks of five, six years ago but even a historical average rate," he says.
Burnett says it's unlikely that shipping rates will increase significantly in the near future.
"We're probably hitting a bottom, but with the supply of vessels out there right now, you're probably not going to see an uptick from these lower levels for quite some time," he says.
The low freight rates allow exporters like CWB to compete in markets that are out of reach with higher shipping rates.
"We can go to markets that weren't competitive under the high freight rate regime now, so generally speaking it's good news for our export demand."
The new free-trade agreement between Canada and Korea is expected to be very important for the beef industry. Korea was a $40-million marke
Applications are still open for the 2015-16 Farm Credit Canada Ag Safety Fund. This year, a total of $100,000 will be awarded to successful
Canadian canola will soon see tariff-free access to South Korea. the signing of the Canada-Korea Free Trade Agreement this week will see Ko
The Federal Government has dismissed complaints from CN Rail this week. CN is facing fines for failing to ship the required minimum amoun
Harvest results have so far been outstanding in the US, says the director of marketing for CWB. Neil Townsend says there have been some rea
Farmers of North America is asking farmers to express their interest in investing in and building a farmer-owned grain-handling and fertiliz
There was a ground breaking ceremony this week near Saskatoon. Bayer CropScience broke ground on its new Wheat Breeding Centre, just 25 min
As harvest is in full swing, the Farm Stress Line remains a useful tool for anyone in rural Saskatchewan seeking help dealing with stress or
A new online tool has been developed by the Canadian Agricultural Safety Association that that will allow farmers to voice equipment safet
CWB has released its Pool Return Outlooks (PROs) for the 2014-15 pools and Futures Choice pools. Compared to the last PRO projected returns
Representatives with the Agricultural Producers Association of Saskatcewan met with the provincial government last week to discuss some key
CWB has completed its acquisition of Great Sandhills Terminal at Leader. The deal was finalized following a shareholder vote last month whe
Rainfall across the province this past week ranged from trace amounts to several inches delaying harvest depending on the area. This week
There are varying opinions on how to control Roundup Ready canola that sprouts up in Roundup Ready soybeans. Joe Vink, Weed Management Te
The weather and crop specialist with CWB Market Research says the entire globe is experiencing quality issues during this year's harvest.